NASHVILLE — Automakers' woes can be an opportunity for the aftermarket in the world of telematics. Financial setbacks and a slower
speed to market are some of the problems OEMs face, but the aftermarket is in a unique position to capitalize on this predicament.
"The pressure (OEMS) are under seems to be an open door the aftermarket can walk through," says Derek Kaufman, president and
founder of C3 Network, and the opening speaker at the Automotive Distribution Network's national convention in Nashville.
Kaufman, an industry telematics expert, also is the author of the "Telematics Primer — The Aftermarket's Role in the Telematics
Future," which was commissioned by the Automotive Aftermarket Industry Association (AAIA).
Telematics, which Kaufman says can be a threat and an opportunity for the aftermarket, is basically a means of two-way communications
for automobiles and can include anything from Global Positioning Systems (GPS) to entertainment, vehicle diagnostics, stolen
vehicle recovery and safety and security features, among a myriad of other advanced technologies.?
Kaufman's message for the aftermarket, however, is this: "I believe the whole telematics front is an opportunity for the aftermarket."
About 28 percent of vehicles in the U.S. have telematics devices, says Kaufman, who adds that this number is expected to equal
40 percent by 2012.
Telematics is expected to be a $2.4 billion market in the U.S. alone by 2012, with a $9.3 billion global market expected during
the same timeframe.
A pivotal player in telematics is hand-held smart phones, like the iPhone, and moving forward, cellular phones will become
a game-changer in the telematics realm, Kaufman says. With hand-held devices, the vehicle becomes a docking station for entertainment
and wireless Internet.
Kaufman encourages the industry to take an "open source" approach with hand-held applications, which will allow outside developers
to help problem-solve and come up with sophisticated programs.
Open source is a successful model for software development because it relies on a far-reaching network of experts. "If you
open source it, anyone can play," says Kaufman, who adds that with an open source mindset, the best talent is out there (but)
they don't want to be contained within the confines of a company's four walls.
He also says the industry is in need of a Telematics Consortium to help the aftermarket compete with OEM telematics providers.
— Chris Miller, senior editor
